WASHINGTON—A reorganization of the Consumer Financial Protection Bureau’s enforcement and supervision unit could mean less oversight of small firms such as payday lenders and debt collectors, according to one analysis.
“A reorganization announced inside the Bureau Oct. 14 means that CFPB enforcement attorneys may lose that power and would have to rely on agency supervisors to send them cases,” Bloomberg Law stated.
Potential violations at debt collectors, payday lenders and other nonbanks may go undetected if the enforcement office is ultimately blocked from opening its own investigations, Bloomberg Law further suggested.